BOSTON, Mass. (
) --An attorney representing
contacted me last night via email, demanding a retraction to my story Wednesday concerning the
and the South African licensing deal for Cel-Sci's cancer drug Multikine.
Jay Auslander, a partner with the New York law firm Siller Wilk, took issue with my claim that Cel-Sci sold "deeply discounted stock" to Byron as part of the South African licensing deal.
"Cel-Sci did not issue the stock at a deep discount; on the contrary Cel-Sci issued the stock at a premium," Auslander writes, demanding an immediate correction.
No correction is necessary because Cel-Sci's stock sale to Byron involved stock and warrants, which when taken together represent a deeply discounted sweetheart deal for Byron. The "three-fer" deal helped Byron book millions of dollars in profits -- realized or on paper, depending on if Byron sold the stock and warrants.
What I found more interesting about Auslander's letter, however, was what he didn't complain or ask about. Nowhere in his letter does he claim that Byron Biopharma is a real company and not just some
, as my story lays out in great detail.
If Byron was a real operating company and its partnership with Cel-Sci was totally on the up and up, you'd think Auslander would be screaming from the rooftops about it. He would have offered me definitive proof that Byron was a real company, if for no other reason than to shoot down the central premise of my story.
But Auslander did no such thing. He said nothing about Byron.
In my response last night, I asked Auslander for contact information or evidence to document the claim made by Cel-Sci that Byron is a real company that will market Multikine in South Africa.
I'm still waiting for his response.
BioCryst Ships Flu Drug to U.S.
(At 8:03 AM ET)
said Thursday that it shipped 10,000 courses of its intravenous H1N1 flu drug peramivir , valued at $22.5 million, to the U.S. government.
The number of peramivir courses ordered initially by the U.S. Department of Health and Human Services is lower than the maximum 40,000 courses conceived under the agency's original request submitted to the company in late September.
But the $2,250-per-course price that the U.S. government is paying to stockpile peramivir is on the
, than expectations.
The peramivir shipped Wednesday enters the government stockpile and will be distributed by the Centers for Disease Control and Prevention to doctors on a per-patient basis when need to treat seriously ill, hospitalized patients stricken with the H1N1 flu virus.
Peramivir is not an approved drug, so CDC is
BioCryst is manufacturing another 120,000 courses of peramivir in case the government requires additional stockpiles. Under its existing contract, the government could purchase another 30,000 courses of the drug.
BioCryst shares closed Wednesday at $10.10.
-- Reported by Adam Feuerstein in Boston
Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;
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